Question 1

Who is the director?

Accepted Answer

A director is a member of the board of directors of a company. The board of directors is responsible for the overall management and governance of the company. Directors have a fiduciary duty to act in the best interests of the company and its shareholders.

Question 2

Why was an additional director appointed?

Accepted Answer

There are many reasons why a company might appoint an additional director. Some common reasons include:

To fill a vacancy on the board

To add expertise in a particular area

To increase the diversity of the board

To comply with regulatory requirements

Question 3

How are directors appointed in a company?

Accepted Answer

Directors are typically appointed by the shareholders of a company at the annual general meeting (AGM). However, the board of directors may also be authorized to appoint additional directors between AGMs.

Question 4

Which resolution is required for the appointment of a director?

Accepted Answer

The resolution required for the appointment of a director is a Resolution for the Appointment of a Director. This resolution should include the following information

The name of the director being appointed

The date of the appointment

The term of the appointment (if applicable)

Any other relevant information, such as the director's qualifications or experience The resolution should be passed in accordance with the company's bylaws or articles of association.

Question 5

Who is the additional director?

Accepted Answer

An additional director is a director who is appointed by the board of directors between AGMs. Additional directors typically hold office until the next AGM.

Question 6

Is there any eligibility criteria for adding a new director?

Accepted Answer

Yes, there is and it is as follows:

The proposed individual must be a major.
They must qualify as per the laws mentioned under the Companies Act, 2013.
The members of the board must consent to the appointment of the proposed individual.

Question 7

Should I apply for another DIN, if I already have one?

Accepted Answer

No, a DIN or director identification number is permanently allotted and can be used for a lifetime. Once it is allotted, the same number may be used for multiple appointments and resignations.

Question 8

Can a company appoint another corporate body as its working director?

Accepted Answer

No, as per the Companies Act, 2013, only individuals can serve as directors of public and private limited companies.

Question 9

Can a company add a foreigner or NRI as a director?

Accepted Answer

Yes, an NRI or foreign national may be added as a director in a private limited company as long as there is at least one director on the board who is an Indian resident. To do so, they must have a valid passport and a DIN.

Question 10

What is the minimum number of directors a company should have?

Accepted Answer

The minimum number of directors required is based on the type of company. For a one-person company it is 1, for a private company it is 2 and a public company needs to have at least 3 directors.

Question 11

Who can't be a director of a company?

Accepted Answer

A person cannot be appointed as a director if he doesn’t qualify under the AoA, if they are an undischarged bankrupt, or if they are restricted by a court order.

Question 12

What is the maximum number of directors in a company?

Accepted Answer

A private company can have a maximum of 15 directors.

Question 13

Is the process completely online?

Accepted Answer

Yes, the process is 100% online. We will provide you with a dashboard in which you can comfortably do everything.

Question 14

Can someone with a criminal record be a director?

Accepted Answer

Yes, a person with a criminal record can be a director of a company as long as they are not restricted specifically by a court order.

Appointment/Adding a Director to Your Company

FAQ's on Appointment/Adding a Director to Your Company

Trusted by 400,000 clients and counting, including …